What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $42,000 mark and is looking quite bearish in the immediate short term. The price has struggled to move upwards in the past week, which is an indication that bears are gaining more control.
Currently, Bitcoin is hanging on the support at $40,600, and if we close just one daily candle below it, we could see another major sell-off.
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Analyzing the Daily Charts
If we take a look at the 1-Day charts, we can observe that Bitcoin was forming a series of higher highs until it got rejected by the $52,800 mark. After the rejection, BTC started trading in a downtrend and is now forming lower highs.
If we keep following this downtrend, it is likely that we will break below the support at $40,600. Breaking below this level will trigger another sell-off, and we can expect to find support around the $37,000 – $38,000 region.
We can see that this region has acted as support in the recent past, and we are likely to bounce back from here. Also, both levels align perfectly with our Fibonacci levels from swing-low to swing-high.
Conclusion: Where is Bitcoin (BTC) Headed Next?
Bitcoin is currently looking bearish in the short term, and we can expect it to go below $40,600 in the coming days. We would not be trading Bitcoin in the short term and will only be buying more if it finds support around the $37,000 – $38,000 mark.
If Bitcoin manages to break above $42,800 in the coming hours, then it will start gaining some bullish momentum once again.
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